AT&T : Financial and Operational Schedules & Non-GAAP Reconciliations (1Q26 ATT Financial and Operational Schedules and Non GAAP Reconciliations)

Published: 2026-04-22 06:46:20 ET T

Published on 04/22/2026 at 06:46 am EDT

Financial and Operational Schedules & Non-GAAP Reconciliations

April 22, 2026

‌AT&T Inc.‌

Financial Data

Consolidated Statements of Income

Dollars in millions except per share amounts Unaudited

First Quarter

2026 2025

Percent Change

Operating Revenues

Service

$ 25,478

$ 25,138

1.4 %

Equipment

6,028

5,488

9.8 %

Total Operating Revenues

31,506

30,626

2.9 %

Operating Expenses

Cost of revenues

Equipment

6,305

5,694

10.7 %

Other cost of revenues (exclusive of depreciation and amortization shown separately below)

6,261

6,339

(1.2)%

Selling, general and administrative

7,316

7,145

2.4 %

Asset impairments and abandonments and restructuring

504

- %

Depreciation and amortization

4,966

5,190

(4.3)%

Total Operating Expenses

24,848

24,872

(0.1)%

Operating Income

6,658

5,754

15.7 %

Interest Expense

1,813

1,658

9.3 %

Equity in Net Income (Loss) of Affiliates

(41)

1,440

- %

Other Income (Expense) - Net

594

455

30.5 %

Income from Continuing Operations Before Income Taxes

5,398

5,991

(9.9)%

Income tax expense on continuing operations

1,179

1,299

(9.2)%

Income From Continuing Operations

4,219

4,692

(10.1)%

Loss from discontinued operations, net of tax

(38)

- %

Net Income

4,181

4,692

(10.9)%

Net Income Attributable to Noncontrolling Interest

(352)

(341)

(3.2)%

Net Income Attributable to AT&T

$ 3,829

$ 4,351

(12.0)%

Preferred Stock Dividends and Redemption Gain

(36)

- %

Net Income Attributable to Common Stock

$ 3,793

$ 4,395

(13.7)%

Basic Earnings Per Share Attributable to Common Stock

Income from continuing operations

$ 0.54

$ 0.61

(11.5)%

Loss from discontinued operations

$ -

- %

$ 0.54

$ 0.61

(11.5)%

Weighted Average Common Shares Outstanding (000,000)

7,017

7,213

(2.7)%

Diluted Earnings Per Share Attributable to Common Stock

Income from continuing operations

$ 0.54

$ 0.61

(11.5)%

Loss from discontinued operations

$ -

- %

$ 0.54

$ 0.61

(11.5)%

Weighted Average Common Shares Outstanding with Dilution (000,000)

7,027

7,223

(2.7)%

‌AT&T Inc.

Financial Data

Consolidated Balance Sheets

Dollars in millions

Mar. 31, Dec. 31,

2026 2025

Assets

Current Assets

(Unaudited)

Cash and cash equivalents

$ 11,964

$ 18,234

Accounts receivable - net of related allowances for credit loss of $363 and $429

8,335

8,843

Inventories

2,451

2,420

Prepaid and other current assets

23,532

19,235

Total current assets

46,282

48,732

Property, Plant and Equipment - Net

133,124

131,559

Goodwill - Net

63,838

63,425

Licenses - Net

129,144

128,148

Other Intangible Assets - Net

6,135

5,254

Investments in and Advances to Equity Affiliates

1,108

1,106

Operating Lease Right-Of-Use Assets

22,756

22,642

Other Assets

18,801

19,332

Total Assets

$ 421,188

$ 420,198

Liabilities and Stockholders' Equity

Current Liabilities

Debt maturing within one year

$ 6,818

$ 9,011

Accounts payable and accrued liabilities

37,304

38,514

Advanced billings and customer deposits

4,330

4,266

Dividends payable

1,969

1,989

Total current liabilities

50,421

53,780

Long-Term Debt

131,589

127,089

Deferred Credits and Other Noncurrent Liabilities

Noncurrent deferred tax liabilities

59,113

58,312

Postemployment benefit obligation

8,427

8,478

Operating lease liabilities

18,907

18,943

Other noncurrent liabilities

25,109

25,104

Total deferred credits and other noncurrent liabilities

111,556

110,837

Redeemable Noncontrolling Interest

2,003

2,001

Stockholders' Equity

Preferred stock

Common stock

7,621

Additional paid-in capital

106,084

106,533

Retained earnings

17,620

15,768

Treasury stock

(20,273)

(18,529)

Accumulated other comprehensive income (loss)

(1,392)

(860)

Noncontrolling interest

15,959

15,958

Total stockholders' equity

125,619

126,491

Total Liabilities and Stockholders' Equity

$ 421,188

$ 420,198

‌AT&T Inc.

Financial Data

Consolidated Statements of Cash Flows

Dollars in millions

Unaudited

First Quarter

2026

2025

Operating Activities

Income from continuing operations

$ 4,219

$ 4,692

Adjustments to reconcile income from continuing operations to net cash provided by operating activities from continuing operations:

Depreciation and amortization

4,966

5,190

Provision for uncollectible accounts

560

516

Asset impairments and abandonments and restructuring

504

Pension and postretirement benefit expense (credit)

(396)

(397)

Net (gain) loss on investments

Changes in operating assets and liabilities:

Receivables

(119)

Equipment installment receivables and related sales

255

1,212

Contract asset and cost deferral

(327)

(147)

Inventories, prepaid and other current assets

(173)

(661)

Accounts payable and other accrued liabilities

(2,770)

(3,297)

Changes in income taxes

1,147

1,285

Postretirement claims and contributions

(72)

(68)

Other - net

277

124

Total adjustments

3,376

4,357

Net Cash Provided by Operating Activities from Continuing Operations

7,595

9,049

Investing Activities

Capital expenditures

(4,877)

(4,277)

Acquisitions, net of cash acquired

(2,674)

(20)

Dispositions

628

(Purchases), sales and settlements of securities - net

(14)

Other - net

(547)

(717)

Net Cash Used in Investing Activities from Continuing Operations

(7,484)

(4,958)

Financing Activities

Issuance of long-term debt

8,098

2,956

Repayment of long-term debt

(5,247)

(1,526)

Payment of vendor financing

(212)

(203)

Redemption of preferred stock

(2,075)

Purchase of treasury stock

(2,475)

(218)

Issuance of treasury stock

Issuance of preferred interests in subsidiary

2,221

Dividends paid

(1,997)

(2,091)

Other - net

(265)

366

Net Cash Used in Financing Activities from Continuing Operations

(2,097)

(553)

Net increase (decrease) in cash and cash equivalents and restricted cash from continuing operations

(1,986)

3,538

Cash flows from Discontinued Operations:

Cash used in operating activities

(38)

Cash used in investing activities

(4,171)

Cash used in financing activities

Net increase (decrease) in cash and cash equivalents and restricted cash from discontinued operations

(4,209)

Net increase (decrease) in cash and cash equivalents and restricted cash

$ (6,195)

$ 3,538

Cash and cash equivalents and restricted cash beginning of year

18,527

3,406

Cash and Cash Equivalents and Restricted Cash End of Period

$ 12,332

$ 6,944

‌AT&T Inc.

Consolidated Supplementary Data

Supplementary Financial Data

Dollars in millions except per share amounts Unaudited

First Quarter

2026 2025

Percent Change

Capital expenditures

Purchase of property and equipment

$ 4,835

$ 4,240

14.0 %

Interest during construction

13.5 %

Total Capital Expenditures

$ 4,877

$ 4,277

14.0 %

Acquisitions, net of cash acquired

Business acquisitions

$ 1,656

$ -

- %

Spectrum acquisitions

1,018

- %

Interest during construction - spectrum

- %

Total Acquisitions

$ 2,674

$ 20

- %

Cash paid for interest

$ 1,936

$ 1,804

7.3 %

Cash paid for income taxes, net of (refunds)

$ 1

$ 11

(90.9) %

Dividends Declared per Common Share

$ 0.2775

- %

End of Period Common Shares Outstanding (000,000)

6,965

7,196

(3.2) %

Debt Ratio

52.0 %

50.9 %

110 BP

Total Employees

132,590

139,970

(5.3) %

The segment provides domestic 5G and fiber-based wireless, internet and other advanced connectivity services to consumer and business customers.

Segment Results

Dollars in millions

Unaudited

First Quarter

2026 2025

Percent Change

Operating Revenues

Wireless service

$ 16,941

$ 16,651

1.7 %

Advanced home internet

2,799

2,198

27.3 %

Business fiber and advanced connectivity

1,882

1,755

7.2 %

Business transitional and other

1,083

1,294

(16.3) %

Other service

158

162

(2.5) %

Total Service Revenues

22,863

22,060

3.6 %

Equipment

5,608

5,132

9.3 %

Total Segment Operating Revenues

28,471

27,192

4.7 %

Operating Expenses

Operations and support

16,913

16,247

4.1 %

Depreciation and amortization

4,705

4,973

(5.4) %

Total Segment Operating Expenses

21,618

21,220

1.9 %

Operating Income

$ 6,853

$ 5,972

14.8 %

Operating Income Margin

24.1 %

22.0 %

210 BP

Supplementary Operating Data

Subscribers and connections in thousands

Unaudited

March 31,

2026 2025

Percent Change

Retail Wireless Subscribers1

109,292 108,418

0.8 %

Phone

91,057 90,193

1.0 %

Postpaid phone

74,503 73,031

2.0 %

Prepaid phone

16,554 17,162

(3.5) %

Other

18,235 18,225

0.1 %

Retail Wireless Net Adds1, 2

158 256

(38.3) %

Phone

222 304

(27.0) %

Postpaid phone

294 324

(9.3) %

Prepaid phone

(72) (20)

- %

Other

(64) (48)

(33.3) %

Phone churn3

1.20 % 1.16 %

4 BP

Postpaid phone churn3

0.89 % 0.83 %

6 BP

Prepaid phone churn3

2.62 % 2.55 %

7 BP

1 Wireless subscribers and net additions exclude customers with free lines provided under promotional pricing until such lines are

converted to paying lines.

2 Excludes migrations between wireless subscriber categories, including connected devices, and acquisition-related activity.

3 Calculated by dividing the aggregate number of wireless subscribers who canceled service during a month by the total number of wireless subscribers at the beginning of that month. The churn rate for the period is equal to the average of the churn rate for each month of that period.

First Quarter

2026 2025

Percent

Change

Internet Connections

14,833 11,443

29.6 %

Fiber

12,501 10,211

22.4 %

AT&T Fiber

11,800 9,592

23.0 %

AT&T Business Fiber1

701 619

13.2 %

Fixed Wireless

2,332 1,232

89.3 %

AT&T Internet Air (AIA)

1,736 803

- %

Business Fixed Wireless2

596 429

38.9 %

Internet Net Adds3

584 516

13.2 %

Fiber

292 283

3.2 %

AT&T Fiber

273 261

4.6 %

AT&T Business Fiber1

19 22

(13.6) %

Fixed Wireless

292 233

25.3 %

AT&T Internet Air (AIA)

239 181

32.0 %

Business Fixed Wireless2

53 52

1.9 %

1 Includes fiber broadband internet for businesses and excludes dedicated and ethernet fiber.

2 Includes AT&T Internet Air for Business and historical fixed wireless services. Excludes integrated gateway wireless connections used for secondary or back-up connectivity.

3 Excludes acquisition-related activity and the impact of customer disconnections resulting from the termination of AIA services in areas with unfavorable regulatory requirements in the first quarter of 2025.

The segment provides domestic legacy voice and data services to consumer and business customers over our copper-based network. Legacy segment results include revenues derived from copper-based services and direct operating costs.

Segment Results

Dollars in millions

Unaudited

First Quarter

2026 2025

Percent Change

Segment Operating Revenues

$ 1,768

$ 2,368

(25.3) %

Segment Operating Expenses

Operations and support

1,156

1,349

(14.3) %

Depreciation and amortization

- %

Total Operating Expenses

1,156

1,349

(14.3) %

Operating Income

$ 612

$ 1,019

(39.9) %

Operating Income Margin

34.6 %

43.0 %

(840) BP

The segment provides wireless services and equipment to customers in Mexico.

Segment Results

Dollars in millions Unaudited

First Quarter

2026 2025

Percent Change

Operating Revenues

Wireless service

$ 753

$ 615

22.4 %

Wireless equipment

420

356

18.0 %

Total Segment Operating Revenues

1,173

971

20.8 %

Operating Expenses

Operations and support

953

778

22.5 %

Depreciation and amortization

200

150

33.3 %

Total Segment Operating Expenses

1,153

928

24.2 %

Operating Income

$ 20

$ 43

(53.5) %

Operating Income Margin

1.7 %

4.4 %

(270) BP

Supplementary Operating Data

Subscribers and connections in thousands Unaudited

March

2026

31,

2025

Percent Change

Mexico Wireless Subscribers

Postpaid

7,088

5,997

18.2 %

Prepaid

16,835

17,376

(3.1) %

Reseller

180

235

(23.4) %

Total Mexico Wireless Subscribers

24,103

23,608

2.1 %

Percent Change

First Quarter

2026

2025

Mexico Wireless Net Additions

Postpaid

337

160

- %

Prepaid

(895)

(110)

- %

Reseller

(19)

(18)

(5.6) %

Total Mexico Wireless Net Additions

(577)

- %

We provide supplemental information on our advanced consumer and business customer relationships in the following tables as the product lifecycles in these customer categories influence the growth trajectories of Advanced Connectivity segment results.

Consumer Results

Dollars in millions

Unaudited

First Quarter

2026 2025

Percent Change

Operating Revenues

Wireless service

$ 14,584

$ 14,370

1.5 %

Advanced home internet

2,799

2,198

27.3 %

Other service

158

162

(2.5) %

Total Service Revenues

17,541

16,730

4.8 %

Equipment

4,611

4,246

8.6 %

Total Operating Revenues

22,152

20,976

5.6 %

Operating Expenses

Operations and support

12,589

11,801

6.7 %

Depreciation and amortization

3,022

3,011

0.4 %

Total Operating Expenses

15,611

14,812

5.4 %

Operating Income

$ 6,541

$ 6,164

6.1 %

Operating Income Margin

29.5 %

29.4 %

10 BP

‌Business Results

Dollars in millions

Unaudited

First Quarter

2026 2025

Percent Change

Operating Revenues

Wireless service

$ 2,357

$ 2,281

3.3 %

Fiber and advanced connectivity

1,882

1,755

7.2 %

Transitional and other service

1,083

1,294

(16.3) %

Total Service Revenues

5,322

5,330

(0.2) %

Equipment

997

886

12.5 %

Total Operating Revenues

6,319

6,216

1.7 %

Operating Expenses

Operations and support

4,324

4,446

(2.7) %

Depreciation and amortization

1,683

1,962

(14.2) %

Total Operating Expenses

6,007

6,408

(6.3) %

Operating Income (Loss)

$ 312

$ (192)

- %

Operating Income Margin

4.9 %

(3.1)%

800 BP

Three Months Ended

Dollars in millions Unaudited

March 31, 2026

Operating Revenues

Advanced Latin Total Connectivity Legacy America Segment

Corporate AT&T

& Other Inc.

Wireless service

$ 16,941

$ -

$ 753

$ 17,694

$ - $ 17,694

Consumer

14,584

Business

2,357

Advanced home internet

2,799

- 2,799

Business fiber and advanced connectivity

1,882

- 1,882

Business transitional and other

1,083

- 1,083

Other service

158

1,768

1,926

94 2,020

Total Service

22,863

1,768

753

25,384

94 25,478

Equipment

5,608

420

6,028

- 6,028

Operating Revenues

28,471

1,768

1,173

31,412

94 31,506

Operating Expenses

Operations and support expenses

16,913

1,156

953

19,022

714 19,736

Asset impairment and abandonment and restructuring

- -

Transaction, legal and other costs

146 146

Depreciation and amortization

4,705

200

4,905

61 4,966

Operating Expenses

21,618

1,156

1,153

23,927

921 24,848

Operating Income (Loss)

$ 6,853

$ 612

$ 20

$ 7,485

$ (827) $ 6,658

Total other income (expense) (1,260)

Income from continuing operations before income tax

$ 5,398

March 31, 2025

Operating Revenues

Advanced Connectivity

Legacy

Latin America

Total Segment

Corporate AT&T

& Other Inc.

Wireless service

$ 16,651

$ -

$ 615

$ 17,266

$ - $ 17,266

Consumer

14,370

Business

2,281

Advanced home internet

2,198

- 2,198

Business fiber and advanced connectivity

1,755

- 1,755

Business transitional and other

1,294

- 1,294

Other service

162

2,368

2,530

95 2,625

Total Service

22,060

2,368

615

25,043

95 25,138

Equipment

5,132

356

5,488

- 5,488

Operating Revenues

27,192

2,368

971

30,531

95 30,626

Operating Expenses

Operations and support expenses

16,247

1,349

778

18,374

725 19,099

Asset impairment and abandonment and restructuring

504 504

Transaction, legal and other costs

79 79

Depreciation and amortization

4,973

150

5,123

67 5,190

Operating Expenses

21,220

1,349

928

23,497

1,375 24,872

Operating Income (Loss)

$ 5,972

$ 1,019

$ 43

$ 7,034

$ (1,280) $ 5,754

Total other income (expense)

237

Income from continuing operations before income tax

$ 5,991

‌Discussion and Reconciliation of Non-GAAP Measures‌

We believe the following measures are relevant and useful information to investors as they are part of AT&T's internal management reporting and planning processes and are important metrics that management uses to evaluate the operating performance of AT&T and its segments. Management also uses these measures as a method of comparing performance with that of many of our competitors. These measures should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with U.S. generally accepted accounting principles (GAAP).

On February 2, 2026, we closed our transaction with Lumen Technologies, Inc. (Lumen) and acquired substantially all of Lumen's Mass Markets fiber business. The acquisition included customer relationships, which we include with our advanced home internet services, and fiber network assets that were placed in a wholly owned subsidiary, Forged Fiber 37 Services, LLC (Forged Fiber). We plan to sell a controlling interest in Forged Fiber to an equity partner that will co-invest in the ongoing business. As such, Forged Fiber met the criteria of held-for-sale and accordingly is reflected as discontinued operations in the accompanying financial statements. The information below refers only to our continuing operations and does not include discussion of balances or activity of Forged Fiber.

Free cash flow is defined as cash from operations minus cash flows related to our DIRECTV equity investment that was sold in July 2025, minus capital expenditures and cash paid for vendor financing (classified as financing activities). Free cash flow after dividends is defined as cash from operations minus cash flows related to our DIRECTV equity investment, capital expenditures, cash paid for vendor financing and dividends on common and preferred shares. Free cash flow dividend payout ratio is defined as the percentage of dividends paid on common and preferred shares to free cash flow. We believe these metrics provide useful information to our investors because management views free cash flow as an important indicator of how much cash is generated by routine business operations, including capital expenditures and vendor financing, and makes decisions based on it. Management also views free cash flow as a measure of cash available to pay debt and return cash to shareowners.

Free Cash Flow and Free Cash Flow Dividend Payout Ratio

Dollars in millions

First Quarter

2026

2025

Net Cash Provided by Operating Activities from Continuing Operations

$ 7,595

$ 9,049

Less: Distributions from DIRECTV classified as operating activities

(1,423)

Less: Capital expenditures

(4,877)

(4,277)

Less: Payment of vendor financing

(212)

(203)

Free Cash Flow

2,506

3,146

Less: Dividends paid

(1,997)

(2,091)

Free Cash Flow after Dividends

$ 509

$ 1,055

Free Cash Flow Dividend Payout Ratio

79.7 %

66.5 %

In connection with capital improvements, we negotiate with some of our vendors to obtain favorable payment terms of 120 days or more, referred to as vendor financing, which are excluded from capital expenditures and reported in accordance with GAAP as financing activities. We present an additional view of cash paid for capital investment to provide investors with a comprehensive view of cash used to invest in our networks, product developments and support systems.

Cash Paid for Capital Investment

Dollars in millions

First Quarter

2026

2025

Capital expenditures

$ (4,877) $

(4,277)

Payment of vendor financing

(212)

(203)

Cash paid for Capital Investment

$ (5,089) $

(4,480)

Our calculation of EBITDA, as presented, may differ from similarly titled measures reported by other companies. For AT&T, EBITDA excludes other income (expense) - net, and equity in net income (loss) of affiliates, as these do not reflect the operating results of our subscriber base or operations that are not under our control. Equity in net income (loss) of affiliates represents the proportionate share of the net income (loss) of affiliates in which we exercise significant influence, but do not control. Because we do not control these entities, management excludes these results when evaluating the performance of our primary operations. EBITDA also excludes interest expense and the provision for income taxes. Excluding these items eliminates the expenses associated with our capital and tax structures. Finally, EBITDA excludes depreciation and amortization in order to eliminate the impact of capital investments. EBITDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. EBITDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with GAAP.

These measures are used by management as a gauge of our success in acquiring, retaining and servicing subscribers because we believe these measures reflect AT&T's ability to generate and grow subscriber revenues while providing a high level of customer service in a cost-effective manner. Management also uses these measures as a method of comparing cash generation potential with that of many of its competitors. The financial and operating metrics which affect EBITDA include the key revenue and expense drivers for which management is responsible and upon which we evaluate performance.

There are material limitations to using these non-GAAP financial measures. EBITDA and EBITDA margin, as we have defined them, may not be comparable to similarly titled measures reported by other companies. Furthermore, these performance measures do not take into account certain significant items, including depreciation and amortization, interest expense, tax expense and equity in net income (loss) of affiliates. For market comparability, management analyzes performance measures that are similar in nature to EBITDA as we present it, and considering the economic effect of the excluded expense items independently as well as in connection with its analysis of net income as calculated in accordance with GAAP. EBITDA and EBITDA margin should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP.

EBITDA and Adjusted EBITDA

Dollars in millions

First Quarter

2026

2025

Income from Continuing Operations

$ 4,219

$ 4,692

Additions:

Income Tax Expense

1,179

1,299

Interest Expense

1,813

1,658

Equity in Net (Income) Loss of Affiliates

(1,440)

Other (Income) Expense - Net

(594)

(455)

Depreciation and amortization

4,966

5,190

EBITDA

11,624

10,944

Transaction, legal and other costs

146

Benefit-related (gain) loss

Asset impairments and abandonments and restructuring

504

Adjusted EBITDA1

$ 11,795

$ 11,533

1 See "Adjusting Items" section for additional discussion and reconciliation of adjusted items.

‌Segment EBITDA and EBITDA Margin

Dollars in millions

First Quarter

2026

2025

Advanced Connectivity Segment

Operating Income

$ 6,853

$ 5,972

Add: Depreciation and amortization

4,705

4,973

EBITDA

$ 11,558

$ 10,945

Total Operating Revenues

$ 28,471

$ 27,192

Operating Income Margin

24.1 %

22.0 %

EBITDA Margin

40.6 %

40.3 %

Legacy Segment

Operating Income

$ 612

$ 1,019

Add: Depreciation and amortization

EBITDA

$ 612

$ 1,019

Total Operating Revenues

$ 1,768

$ 2,368

Operating Income Margin

34.6 %

43.0 %

EBITDA Margin

34.6 %

43.0 %

Latin America Segment

Operating Income

$ 20

$ 43

Add: Depreciation and amortization

200

150

EBITDA

$ 220

$ 193

Total Operating Revenues

$ 1,173

$ 971

Operating Income Margin

1.7 %

4.4 %

EBITDA Margin

18.8 %

19.9 %

Adjusting items include revenues and costs we consider non-operational in nature, including items arising from asset acquisitions or dispositions, including the amortization of intangible assets. While the expense associated with the amortization of certain wireless licenses and customer lists is excluded, the revenue of the acquired companies is reflected in the measure and that those assets contribute to revenue generation. We also adjust for net actuarial gains or losses associated with our pension and postemployment benefit plans due to the often-significant impact on our results (we immediately recognize this gain or loss in the income statement, pursuant to our accounting policy for the recognition of actuarial gains and losses). Consequently, our adjusted results reflect an expected return on plan assets rather than the actual return on plan assets, as included in the GAAP measure of income.

The tax impact of adjusting items is calculated using the adjusted effective tax rate during the quarter except for adjustments that, given their magnitude, can drive a change in the effective tax rate, in these cases we use the actual tax expense or combined marginal rate of approximately 25%.

Adjusting Items

Dollars in millions

First Quarter

2026

2025

Operating Expenses

Transaction, legal and other costs1

$ 146

$ 79

Benefit-related (gain) loss

Asset impairments and abandonments and restructuring

504

Adjustments to Operations and Support Expenses

171

589

Amortization of intangible assets

Adjustments to Operating Expenses

228

598

Other

Equity in net income of DIRECTV

(1,423)

Benefit-related (gain) loss, impairments of investments and other

Adjustments to Income from Continuing Operations Before Income Taxes

256

(761)

Tax impact of adjustments

(165)

Adjustments to Income From Continuing Operations

$ 197

$ (596)

Preferred stock redemption gain

(90)

Adjustments to Income From Continuing Operations Attributable to Common Stock

$ 197

$ (686)

1 Includes certain legal reserves and settlements that cover extended historical periods, novel theories of liability and/or are unpredictable in both magnitude and timing, and therefore are distinct and separate from normal, recurring legal matters. Such costs are presented net of expected insurance recoveries and are primarily associated with legacy legal matters and cybersecurity events.

‌Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA service margin and Adjusted diluted EPS are non-GAAP financial measures calculated by excluding from operating revenues, operating expenses, other income (expense) and income tax expense, certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, actuarial gains and losses, significant abandonments and impairments, benefit-related gains and losses, employee separation and other material gains and losses. Management believes that these measures provide relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends.

Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA service margin and Adjusted diluted EPS should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. AT&T's calculation of Adjusted items, as presented, may differ from similarly titled measures reported by other companies.

Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA and Adjusted EBITDA Margin

Dollars in millions

First Quarter

2026

2025

Operating Income

$ 6,658

$ 5,754

Adjustments to Operating Expenses

228

598

Adjusted Operating Income

$ 6,886

$ 6,352

EBITDA

$ 11,624

$ 10,944

Adjustments to Operations and Support Expenses

171

589

Adjusted EBITDA

$ 11,795

$ 11,533

Total Operating Revenues

$ 31,506

$ 30,626

Operating Income Margin

21.1 %

18.8 %

Adjusted Operating Income Margin

21.9 %

20.7 %

Adjusted EBITDA Margin

37.4 %

37.7 %

‌Adjusted Diluted EPS

First Quarter

2026

2025

Diluted Earnings Per Share (EPS) From Continuing Operations

$ 0.54

$ 0.61

Equity in net income of DIRECTV

(0.15)

Restructuring and impairments

0.05

Benefit-related, transaction, legal and other items

0.03

Adjusted EPS

$ 0.57

$ 0.51

Year-over-year growth - Adjusted

11.8 %

Weighted Average Common Shares Outstanding with Dilution (000,000)

7,027

7,223

Net Debt to EBITDA ratios are non-GAAP financial measures frequently used by investors and credit rating agencies and management believes these measures provide relevant and useful information to investors and other users of our financial data. Our Net Debt to Adjusted EBITDA ratio is calculated by dividing the Net Debt by the sum of the most recent four quarters Adjusted EBITDA. Net Debt is calculated by subtracting cash and cash equivalents and deposits at financial institutions that are greater than 90 days (e.g., certificates of deposit and time deposits), from the sum of debt maturing within one year and longterm debt.

Net Debt to Adjusted EBITDA - 2026

Dollars in millions

June 30,

20251

Three Months Ended Sept. 30, Dec. 31,

20251 20251

March 31,

2026

Four Quarters

Adjusted EBITDA

$ 11,731

$ 11,861 $ 11,236

$ 11,795

$ 46,623

End-of-period current debt

6,818

End-of-period long-term debt

131,589

Total End-of-Period Debt

138,407

Less: Cash and Cash Equivalents

11,964

Net Debt Balance

126,443

Annualized Net Debt to Adjusted EBITDA Ratio

2.71

1 As reported in AT&T's Form 8-K filed January 28, 2026.

Net Debt to Adjusted EBITDA - 2025

Dollars in millions

June 30,

20241

Three Months Ended Sept. 30, Dec. 31,

20241 20241

March 31,

20251

Four Quarters

Adjusted EBITDA

$ 11,337

$ 11,586 $ 10,791

$ 11,533

$ 45,247

End-of-period current debt

8,902

End-of-period long-term debt

117,259

Total End-of-Period Debt

126,161

Less: Cash and Cash Equivalents

6,885

Less: Time Deposits

150

Net Debt Balance

119,126

Annualized Net Debt to Adjusted EBITDA Ratio

2.63

1 As reported in AT&T's Form 8-K filed January 28, 2026.

Disclaimer

AT&T Inc. published this content on April 22, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 22, 2026 at 10:45 UTC.